Europe Online Grocery Delivery Market Size (2024 - 2029)

Europe Online Grocery Delivery Market Analysis

The European online grocery delivery market is expected to register a CAGR of 17.2% over the forecasted period. The market is driven by increased digital literacy, convenience of use, extensive availability of branded products, economic value with price comparison across brands, discounts and deals, and express delivery. Customers have been drawn to online shopping platforms for a long time because they are convenient and get more and more tailored to their needs. This has increased demand for online grocery delivery.

• Online grocery ordering has become increasingly popular in recent years. One of the primary drivers of market growth is the increasing proliferation of smartphones and internet connections, which allow for very easy and speedy meal delivery. According to GSMA Intelligence, 474 million individuals in Europe (86% of the population) subscribed to mobile services in 2021, and this figure is predicted to rise to 480 million by 2025.
• The incorporation of IOT enables consumers to select online grocery delivery services using voice commands, thereby simplifying the delivery procedure. Such technological advancements are expected to propel the market under consideration. IoT connects businesses to restaurants, allowing them to provide quick delivery. For example, there may be days when they have larger orders that must be fulfilled within a specific time frame. The only thing that matters to a person when making a purchase is their online experience. It must be flawless from the very first use.
• According to Otter, a delivery management and optimization platform survey conducted between January and June last year stated that people throughout the UK like ordering on weekends. The busiest day for delivery is Sunday (16.5% of all orders), followed by Saturday (16.4%) and Friday (16.3%). The number of orders is stable at the start of the week, with a little increase on Thursday. In terms of hours, the most popular time to order delivery is at night, with the 7 to 8 p.m. timeframe leading the way.
• The COVID-19 pandemic benefited the industry since it promoted the usage of online grocery delivery services as millions of individuals were instructed to stay at home to contain the health catastrophe. During the COVID-19 pandemic, the online grocery platform became one of the key players. Delivery services grew rapidly as people ordered more fast food during the pandemic. UberEats dominates the French takeout delivery industry. Still, Deliveroo tripled its subscribers by giving unlimited deliveries for a tiny introductory price of USD 1, rising to USD 5.99 at the end of the second year.
• On the flip side, apart from the consumer base, food expenses are also highly unpredictable. Several variables influence food pricing. Food delivery companies frequently struggle to keep up with market prices and establish a proper pricing strategy. Along with inflation and the mounting revenue shortfalls of its partners, food delivery services must focus on implementing offensive or defensive pricing methods to compete. This puts even more pressure on margins and has an impact on profitability.

Europe Online Grocery Delivery Industry Segmentation

An online grocer is either a physical supermarket or grocery store that accepts online orders or a separate e-commerce operation that sells grocery items. This service normally comes with a delivery fee. Online grocers are traditional supermarkets that have created internet channels to serve their customers better.

The Europe Online Grocery Delivery Market is divided into product types (retail delivery, quick commerce, meal kit delivery) and countries (the United Kingdom, Germany, France, Spain, and the Rest of Europe).

The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.